Accountability standards questions remain as SMCR comes into force

New guidelines introduced at the start of December

There are still questions over how the Financial Conduct Authority (FCA) will regulate key aspects of the Senior Managers & Certification Regime (SMCR), such as senior management "accountability", as the requirements come into force for all asset and wealth managers, according to legal experts.

Applicable to the asset and wealth management sector as of today (9 December), SMCR introduces new administrative, regulatory and conduct requirements that banks and other large financial institutions have been subject to since 2016. SMCR aims to reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct, while encouraging a culture of personal responsibility throughout businesses. Under SMCR, which was introduced in efforts to reduce some behaviour criticised in the aftermath of the Global Financial Crisis, employees are either d...